Answering your credit questions - #3 - if I exercise the "skip a mortgage" payment option, will this affect my credit score?

Question #3:

If I exercise the skip a payment option with my mortgage, will this affect my credit score?

Answer:

No. This is an option that many Schedule One banks offer (i.e. the big banks such as TD, RBC, Scotia, etc.). Today, if you bank online, you can even apply to exercise the option immediately. However, it's still at the discretion of your lender if they'll allow you to do so. You can only skip a payment once a year and remember, you're now paying compound interest over the term of your mortgage by refinancing that skipped payment. Do so with caution and only when needed.

But no, as long as you haven't "missed" a payment, are on time with your payments, etc., this would not affect your credit rating.

P.S. Most Canadians don't realize that their mortgage is *not* reported on their credit report. So, ensure that your loan and credit card payments are always on time and in good order as your diligence in paying your mortgage is great, but won't help bring up your credit score. (By the way, Americans absolutely have their mortgage payments reported on their credit report and are shocked that we don't.)